2020 Q4

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on coal and further clarify civil penalties for violations, among other changes.

The proposed rule is available for viewing here, and pub- lic comments are accepted for 60 days from the date of publication before the final rule is published. [1] https://www.doi.gov/pressreleases/interior-depart- ment-announces-final-regulations-ensure-american-pub- lic-receives-every [2] https://www.federalregister.gov/docu- ments/2017/03/31/2017-06576/promoting-energy-inde- pendence-and-economic-growth [3] https://www.federalregister.gov/docu- ments/2017/05/03/2017-09087/implementing-an-ameri- ca-first-offshore-energy-strategy [4] https://www.doi.gov/sites/doi.gov/files/press-release/ secretarial-order-3350-offshore-508.pdf

Brad Gibbs, Partner bgibbs@kolawllp.com

The content of this publication and any attachments are not intended to be and should not be relied upon as legal advice or to create a lawyer-client relationship. © 2020 Kiefaber & Oliva LLP. All rights reserved. This publication may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Houston (principal office): 815 Walker Street, Suite 1140, Houston, Texas 77002, 713-229-0360 | Columbus: One East Livingston Avenue, Suite B, Columbus, Ohio 43215, 614-349-4525.

Legal

Update

This article is not intended to be and should not be relied upon as legal advice or to establish any kind of an attorney-client relationship with the author.

The Failure To Obtain The Lessor’s “Consent To Assign” Prior To The Lessee Entering Into Deed Of Trust With Oil & Gas Lease(s) Pledged As Collateral

By Terry E. Hogwood Attorney-At-Law

I. Factual Setting

and gas lease, then the written consent of the lessor must be obtained agreeing to said assignment. Other variants of the consent clause, such as those whereby the lessor agrees not to unreasonably withhold its consent, may be the subject of additional related articles). Thereafter, by note and duly recorded mortgage/deed of trust, XYZ Oil Company mortgaged its interest in Said Lease to ABC Bank. XYZ Oil Company thereafter defaulted on its note and ABC Bank foreclosed its deed of trust via a non-judicial foreclosure sale. At that sale, the trustee under the deed of trust issued a trustee’s deed (either a quitclaim deed or a deed with or without a warranty) conveying either “all of its right, title and interest, if any, “or purporting to convey Said Lease or a specific interest in Said Lease” to Burns Oil Company.

A, the mineral owner of Blackacre, leased Blackacre to XYZ Oil Company for oil and gas development purposes (“Said Lease”). XYZ Oil Company thus has, under Texas law, a fee simple determinable interest in the oil, gas and other minerals in, on and under Blackacre ( Anadarko Petroleum Corp. v. Thompson, 94 S.W.3d 550 (Tex. - 2003)). Said Lease was also duly recorded in the pertinent Texas county deed records. Said Lease contained a “consent” provision requiring the written consent by A to any assignment of the oil and gas lease by XYZ Oil Company. (NOTE: this paper will explore only those consent clauses which provide in essence that, if the lessee desires to assign all or any part of the oil

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G r o w t h T h r o u g h E d u c a t i o n - O c t o b e r / N o v e m b e r / D e c e m b e r 2 0 2 0

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